Hi All just after some advice on investment options, i'll firstly explain our situation.
Small business owner aged 52 current income around 60-70k per year own our house current value $530k
2 years to go on car but this comes out of the business profits (income quoted above is after car payments)
Currently paying around 800 a month in super into managed fund.
No savings at present just finished paying off home loan finally!
I've had a look at property but not convinced this the way to go since rental returns for Melbourne are around 4% and current mortgage rates around 7.5% seems a big gap to make up even with neagative gearing. So have been thinking about other ways maybe shares or property trusts etc.
Looking to start to build up some assets, i plan to keep working for as long as possible even if maybe part time a few years down the track as i am fit and healthy.
Any thoughts would be welcome.
Chris
advice
2 posts
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Re: advice
by critique » Wed Aug 18, 2010 6:35 pm
Chriso,
Yours is a interesting situation - your age, 52, means that your preservation age for superannuation is 55. This means that at 55 you can potentially start to look at accessing your superannuation - there are various strategies that can be used to do this. You could combine accessing your super with some/additional salary sacrifice to save some personal tax. If you are not comfortable with more going into superannuation then the alternatives would be shares or managed funds. Here you would need to weigh up the brokerage costs of building a good,diversified portfolio. Depending on how much you want to invest on a regular basis, managed funds might initially be cheaper. What type of managed fund to use would depend on how much time you have before you want to sell down (maybe just prior to retirement?) If you decide to keep investing until 65 you have effectively a 13 year time horizon and could maybe look at "growth"-oriented managed funds rather than "balanced".
Contact me on blog@critique.net.au if you like, we can discuss in more detail. I am a financial planner and willing to discuss in more detail.
Yours is a interesting situation - your age, 52, means that your preservation age for superannuation is 55. This means that at 55 you can potentially start to look at accessing your superannuation - there are various strategies that can be used to do this. You could combine accessing your super with some/additional salary sacrifice to save some personal tax. If you are not comfortable with more going into superannuation then the alternatives would be shares or managed funds. Here you would need to weigh up the brokerage costs of building a good,diversified portfolio. Depending on how much you want to invest on a regular basis, managed funds might initially be cheaper. What type of managed fund to use would depend on how much time you have before you want to sell down (maybe just prior to retirement?) If you decide to keep investing until 65 you have effectively a 13 year time horizon and could maybe look at "growth"-oriented managed funds rather than "balanced".
Contact me on blog@critique.net.au if you like, we can discuss in more detail. I am a financial planner and willing to discuss in more detail.
- critique
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- Joined: Wed Aug 18, 2010 6:18 pm
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